Updated
Updated · Bloomberg · Jul 2
SEC Probes $100 Million Options Trades Tied to Susquehanna Losses
Updated
Updated · Bloomberg · Jul 2

SEC Probes $100 Million Options Trades Tied to Susquehanna Losses

3 articles · Updated · Bloomberg · Jul 2

Summary

  • Unknown traders allegedly made $100 million on options bets placed before a recent Chinese regulatory crackdown on cross-border brokerages, prompting an SEC probe.
  • Susquehanna International Group brought the allegations into public view Monday through a lawsuit filed in Manhattan federal court describing the disputed trades.
  • The SEC is now examining the transactions outlined in that complaint, according to a person familiar with the confidential investigation.
  • The case links US market oversight to fallout from Chinese regulatory action, with Susquehanna casting the bets as insider trading that harmed the firm.

Insights

How can US regulators prove insider trading when the secret information originates from the Chinese government?
Are geopolitical secrets becoming the new currency for high-stakes insider trading on global markets?